Tweedy Browne

Tweedy Browne

Last Update: 05-12-2016
Related: Tweedy Browne Global Value

Number of Stocks: 50
Number of New Stocks: 2

Total Value: $3,632 Mil
Q/Q Turnover: 6%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Tweedy Browne Watch

  • Tweedy Browne Fund 1st Quarter 2016 Commentary

    High equity valuations combined with increasing macroeconomic worries, not the least of which is the sense that monetary largesse may have run its course, continued to roil global equity markets in the first quarter. After a turbulent start to the New Year similar to that faced late last summer, equity markets rather quickly regained their composure to finish the second half of the quarter with a flourish, recouping much of the losses they suffered in the first half of the quarter. With the exception of the Wordwide High Dividend Yield Value Fund, which modestly underperformed its benchmark over the last three months, our remaining three Funds all outperformed their benchmarks in the first quarter, which led to an index beating result, albeit negative, over the last fiscal year in our two global value funds.

      


  • Tweedy Browne Global Value Invests in Bank of New York Mellon

    Tweedy Browne Company LLC, a successor to Tweedy & Co., was first established by Forrest Birchard Tweedy in 1920 as a dealer in closely held and inactively traded securities. The firm’s 96-year history is grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. The firm takes a value investing approach that focuses on long term investments very similar to Joel Greenblatt (Trades, Portfolio), Seth Klarman (Trades, Portfolio) and the founder of value investing Benjamin Graham.


    During the first quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund purchased 1,315,780 shares of Bank of New York Mellon Corp. (NYSE:BK).

      


  • Tweedy Browne Global Value Buys 5 New Stocks in Q1

    Tweedy Browne (Trades, Portfolio) Global Value, an outperforming value fund founded in 1993, updated its first quarter portfolio changes this week, revealing five new stock purchases.


    Tweedy Browne (Trades, Portfolio) purchased two stocks from Hong Kong, one of its smallest country allocations at fourth quarter end and one stock from Germany, one of its larger country allocations. Managers’ purchase of Bank of New York Mellon Corp. (NYSE:BK), the largest new position, slightly expanded the fund’s weighting in its largest sector, financials. Finally, it purchased Avent Inc., a U.S. computer hardware company.

      


  • Tweedy Browne Global Value Adds Shares of AGCO

    Tweedy Browne Company LLC, a successor to Tweedy & Co., was first established by Forrest Birchard Tweedy in 1920 as a dealer in closely held and inactively traded securities. The firm’s 96-year history is grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. The firm takes an investment approach similar to Benjamin Graham, who personally mentored one of the luckiest and most successful investors of all time, Warren Buffett (Trades, Portfolio).


    In the first quarter of 2016, the Tweedy Browne (Trades, Portfolio) Global Value Fund added 256,998 shares of AGCO Corp. (NYSE:AGCO).

      


  • Tweedy Browne Trims Stakes in Financial Stocks

    Guru investment advisory and fund management firm Tweedy Browne (Trades, Portfolio) neither bought nor sold stakes in the fourth quarter and added to only a handful. Nearly all of its activity involved reductions of stakes in its portfolio.


    Tweedy Browne (Trades, Portfolio) slashed its stake in Torchmark Corp. (NYSE:TMK), a McKinney, Texas-based financial services holding company, by 82% with the sale of 1,139,729 shares for an average price of $58.61 per share. The transaction had a -1.91% impact on Tweedy Browne (Trades, Portfolio)’s portfolio.

      


  • Tweedy Browne Reopens Global Value Fund II

    Re-opening of Tweedy Browne (Trades, Portfolio) Global Value Fund II



    The Tweedy Browne (Trades, Portfolio) Global Value Fund II – Currency Unhedged will reopen to new investors on February 1, 2016. As you will recall, the Fund was closed to new investors back in August of 2014, as it had become difficult to invest new subscriptions in the face of rising equity valuations. More recently, flows have become more manageable, and we now believe that the addition of new assets can be managed effectively, without risk of diluting returns to existing shareholders. This is especially true given the enhanced volatility in global equity markets of late which has begun to stimulate new idea flow.

      


  • Tweedy Browne Fund 4th Quarter Commentary

    The Tweedy, Browne Funds produced modestly positive returns in the 4th quarter of 2015, capping off what was in general a rather difficult year for value investors. Each Fund’s cash reserves, low weightings in Japan and the U.S., oil & gas component, and overall value exposure weighed on relative returns. The spread between the value and growth components of the benchmark indices widened considerably in favor of growth during the year. In fact, the so called “FANG” stocks (Facebook, Amazon, Netflix, and Google), which, in our view, trade at exorbitant multiples of earnings power, accounted for about half the return of the MSCI World Index when measured in local currencies. While this kind of divergence is not at all uncommon in the later stages of a bull market as equity valuations become untethered from underlying intrinsic value, it’s hard to recall a previous period when the so called “smart money” seemed so dumb.


    It is not surprising, as market volatility increased in the second half of the year, that the food, beverage, and tobacco component of our Fund portfolios produced the strongest returns. This included strong results for the quarter in Unilever, Philip Morris International (NYSE:PM), and Heineken, with the latter’s strength largely related to the derivative impact of the proposed InBev/SAB Miller deal on beer company valuations. The healthcare segment of the portfolio also stood out, with solid results in Baxalta (NYSE:BXLT), the spinoff from Baxter, which announced shortly after quarter end that it would be acquired by Shire (NASDAQ:SHPG) at a substantial premium. Its former parent, Baxter International, Johnson & Johnson, GlaxoSmithKline, and Roche also produced very nice returns during the quarter. We also had very solid returns in several of our insurance holdings including SCOR, Zurich Insurance Group and Munich Re.

      


  • Tweedy Browne Global Value Raises Stake Sevenfold

    Tweedy Browne (Trades, Portfolio) Global Value septupled its holding in E-L Financial Corp. Ltd. (TSX:ELF) in the fourth quarter, adding 79,300 shares to its stake.


    Tweedy Browne (Trades, Portfolio) Global Value seeks long-term growth of capital by investing throughout the world in a diversified portfolio consisting primarily of non-U.S. marketable equity securities. Tweedy Browne (Trades, Portfolio) Global Value has a policy of purchasing U.S. securities only when there is an attractive opportunity at hand.

      


  • Tweedy Browne Global Value Adds to Stakes in 4th Quarter

    Nearly all of Tweedy Browne (Trades, Portfolio) Global Value Fund’s fourth-quarter activity involved additions to existing stakes.


    The most noteworthy of those transactions was the Fund’s increase of nearly 721% to its stake in E-L Financial Corp. Ltd. (TSX:ELF), a Toronto-based life insurance and financial services company. The Fund purchased 79,300 shares for an average price of C$688.37 (about $485.95 in U.S. currency) per share. The acquisition had a 0.6% impact on the Fund’s portfolio.

      


  • Tweedy Browne Cuts Alphabet, Union Pacific and Philip Morris

    Tweedy Browne cut many of its stakes below 0.2% in the third quarter. It is an investment partnership owned by its four managing directors – William H. Browne, John D. Spears, Thomas H. Shrager and Robert Q. Wyckoff Jr.


    3M Co. (MMM)

      


  • Tweedy Browne Comments on Standard Chartered Bank

    We have also made an investment (in multiple lot purchases over the last two years) in Standard Chartered Bank (LSE:STAN), a UK-headquartered but largely emerging-market-dependent bank that again in our view was conservatively financed by deposits well in excess of loans, and has, in our opinion, one of the best banking networks across Asia, the Middle East, Africa and other emerging markets. Unlike our other Asian bank holdings, Standard Chartered has incurred above average loan losses and recently replaced senior management and undertaken multiple steps to address what we consider to be “fixable” problems. While this process may, and usually does, take longer than expected, we are optimistic that the bank will be able to get through this difficult period, and ultimately emerge stronger and more profitable. As you can imagine, given the uncertainty around China’s future growth (as evidenced by the recent devaluation of the yuan), these bank investments have not been getting the votes from “Mr. Market” over the near term; however, over the longer term, China and other parts of Asia should, in our opinion, continue to grow at rates in excess of the growth rates found in most of the Western world, and we believe these banks should remain significant beneficiaries of that growth.

    from Tweedy Browne (Trades, Portfolio) Investment Advisers' semi-annual report shareholder letter.  


  • Tweedy Browne Investment Advisers' Semi-Annual Letter to Shareholders

    Slowing growth in China, the world’s second largest economy, coupled with uncertainty surrounding the prospective normalization of interest rates in the United States sent tremors through global equity markets over the last several months. After a rather short lived and furious correction in late August and early September, global equity markets regained their footing and, as we write, have taken back much of the ground they lost as summer came to an end.


    For value investors such as ourselves, it remained business as usual through this turbulence, although we would admit to a certain counterintuitive satisfaction as equity markets began their long overdue retreat. After six and a half years of relatively smooth sailing, setting aside a brief hiccup in 2011, it had become quite a challenging environment for value investors. Bargains had become increasingly scarce and many of our existing holdings were trading at or near our estimates of their intrinsic value – consequently, we were selling and trimming back a number of those positions. As a result, cash reserves had increased and our returns were somewhat diluted while the bull markets and their associated benchmark indices raged on. We were able to take some advantage of the markets’ downside volatility in late summer. However, it did not last long enough, nor was it steep enough, for us to make significant headway in putting our cash reserves to work.

      


  • Tweedy Browne Invests in IBM, General Electric in 3rd Quarter

    Using research methodology derived from the work of Benjamin Graham, Tweedy Browne (Trades, Portfolio)’s most significant third-quarter trading activity involved the acquisition of new stakes and the sale of portions of existing stakes.


    Tweedy Browne (Trades, Portfolio)’s top third-quarter transactions were new buys – MRC Global Inc. (NYSE:MRC), International Business Machines Corp. (NYSE:IBM) and General Electric Co. (NYSE:GE).

      


  • Several Gurus Take New Stakes in IBM

    Gurus


    It was a busy quarter for IBM (NYSE:IBM) when it comes to guru purchases. Warren Buffett (Trades, Portfolio) continued to add to his IBM position and now owns 8.35% of the company. Also, Edward Lampert, Bruce Berkowitz (Trades, Portfolio), and Tweedy Browne (Trades, Portfolio) all made sizeable initial investments in the company this past quarter. According to GuruFocus, Lampert took a 0.05% position, Berkowitz has 0.08% and Tweedy Browne (Trades, Portfolio) holds 0.03%.

      


  • How to Pick Value Stocks

    I find it ironic that more research is being done today than at any point in time in the past, yet a lot of value investors are failing to beat the market.


    Ironically, the mountain of articles on popular investing websites just aren't helping. Part of the problem might be due to the "more brains" problem Graham cited years ago. Since everybody on Wall Street is so smart, all those brains ultimately cancel each other out.

      


  • Tweedy, Browne Net Net Stock Darling Shinko Shoji Now Up 49%

    Tweedy, Brown net net darling Shinko Shoji is now up 49% from Net Net Hunter's initial review of the company in July of 2014.

    Last month it came out that legendary value investment firm Tweedy, Browne had added the electronics manufacturer to its portfolio. At the time of the disclosure, Tweedy Browne (Trades, Portfolio) owned 1.77% of the firm's outstanding shares.  


  • Tweedy, Browne Global Value Fund 3Q 2015 Letter to Shareholders

    The third quarter in global equity markets was characterized by a dramatic increase in equity market volatility, seemingly driven in large part by concerns about slowing growth in China, the devaluation of the yuan, volatile oil prices, and the prospect for an increase in U.S. interest rates. While the Tweedy, Browne Funds finished the quarter in the red, all, with the exception of the Worldwide High Dividend Yield Value Fund, bested their respective benchmark indices, with our two international Funds, Global Value and Global Value II, doing so by a considerable margin. Near quarter-end, equity markets began to rebound, and as we write, they have regained much of the ground that was lost in August and early September, and the same holds true for the Tweedy, Browne Funds.


    The Funds do not impose any front-end or deferred sales charges. However, the Global Value Fund, Global Value Fund II – Currency Unhedged and Worldwide High Dividend Yield Value Fund impose a 2% redemption fee on redemption proceeds for redemptions or exchanges made less than 15 days after purchase. Performance data does not reflect the deduction of the redemption fee, and, if reflected, the redemption fee would reduce any performance data quoted for periods of 14 days or less. The expense ratios shown above reflect the inclusion of acquired fund fees and expenses (i.e., the fees and expenses attributable to investing cash balances in money market funds) and may differ from those shown in the Funds' financial statements.

      


  • Tweedy Browne Third Quarter Commentary

    Tweedy Browne Letter To Shareholders:


    The third quarter in global equity markets was characterized by a dramatic increase in equity market volatility, seemingly driven in large part by concerns about slowing growth in China, the devaluation of the yuan, volatile oil prices, and the prospect for an increase in U.S. interest rates. While the Tweedy Browne (Trades, Portfolio) Funds finished the quarter in the red, all, with the exception of the Worldwide High Dividend Yield Value Fund, bested their respective benchmark indices, with our two international Funds, Global Value and Global Value II, doing so by a considerable margin. Near quarter-end, equity markets began to rebound, and as we write, they have regained much of the ground that was lost in August and early September, and the same holds true for the Tweedy Browne (Trades, Portfolio) Funds.

      


  • Despite the Last Negative Quarter, IBM Is Expanding Its Business

    International Business Machines Corp. (IBM) creates business value for clients and solves business problems through integrated solutions that leverage information technology and knowledge of business processes. The company's operations consist of five business segments namely Global Technology Services and Global Business Services, which the company collectively calls Global Services, and Software, Systems and Technology and Global Financing.


    For IBM the third quarter was the 14th straight quarter of declining sales; despite falling sales, the company still plans to invest heavily in Cloud computing, data analytics and other areas where it sees growth and believes the aggressive investments of today would pay off in the future because, with the rise of Cloud computing, corporations are increasingly buying computing resources and software on demand instead of buying their own data center gear.

      


  • 3M Misses Revenue Estimate and Announces Layoffs

    Industrial stock, 3M (NYSE:MMM) recently reported its earnings results for the third quarter of 2015. For the quarter the firm missed analysts’ average revenue estimate by $140 million while also reporting a restructuring that would cut 1,500 jobs. As the industrial sector continues to see reduced revenue in tandem with declining energy sector profits, 3M is yet another large industrial corporation lagging in revenue growth and requiring expense reductions through employee layoffs.


    For the third quarter 3M reported revenue of $7.71 billion resulting in earnings per share of $2.05. While up from the previous quarter, 3M posted another comparable quarter revenue decline with revenue down 5% following a decrease of 6% in the second quarter. Earnings per share continued to climb as sales costs decreased and tax provisions declined. EPS for 3M was up 4% from the comparable quarter and followed a comparable quarter increase in the second quarter of 6%.

      


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